IPO-Bound WeWork India Narrows Q1 Loss By 51% To INR 14.1 Cr

IPO-bound coworking space provider WeWork India managed to trim its net loss by 51% to INR 14.1 Cr in the first quarter of the ongoing financial year (Q1 FY26) from INR 29.2 Cr in the same quarter last year, driven by robust top line growth.

The company’s operating revenue grew 19% to INR 535.3 Cr in Q1 FY26 from INR 448.7 Cr in the year-ago quarter, as per its RHP. The rise in revenue was due to capacity expansion and proportional increase in billed workspaces. The company said that it expanded its operational centres to 68 during the quarter under review as against 56 centres in Q1 FY25. 

Meanwhile, its desk capacity increased to 1.14 Lakh from 92,033 in Q1 FY25. Additionally, WeWork India also saw a 15% surge in its membership fee to INR 460.4 Cr in the three-month period ended June 30, 2025 from INR 400.5 Cr in the same period a year ago.

The company’s total expenses grew at a slower pace compared to the rise in its top line. Expenditure rose 14.4% to INR 559.4 Cr during the quarter under review as against INR 489.1 Cr in the corresponding period last year. 

As a result,  its EBITDA jumped 18.5% to INR 335.4 Cr from during the year under review as against INR 283.1 Cr in Q1 FY25. However, EBITDA margin contracted to 62.66% in Q1 FY26 from 63.11% a year ago. 

For FY25, WeWork India reported its first profitable year, posting a profit after tax (PAT) of INR 128.2 Cr as against a loss of INR 135.7 Cr in the previous fiscal year. Its operating revenue rose 17% to INR 1,949.2 Cr during the year from INR 1,665.1 Cr in FY24. 

WeWork India, which got SEBI’s approval to launch its market debut in July, is now set to open its public issue on Friday (October 3). It has set a price band of INR 615 to INR 648 for its IPO.

As per the RHP, the public issue will solely comprise an OFS of up to 4.62 Cr equity shares. Out of these, the company’s parent entity Embassy Buildcon LLP will offload 3.5 Cr shares and the rest of the equity shares will be diluted by WeWork International’s affiliate 1 Ariel Way Tenant Ltd.

Founded in 2017, WeWork India earlier operated as the Indian arm of US-based coworking space provider WeWork Inc. However, WeWork Inc., once valued at $47 Bn, filed for bankruptcy in November 2023. Currently, Embassy Buildcon holds a 73.56% stake in WeWork India and 1 Ariel Way Tenant has a 22.64% stake.

WeWork India is looking to become the fifth major listed coworking space provider after Awfis, Smartworks, IndiQube, and DevX. 

Where Did WeWork India Spend In Q1?

Here’s a breakdown of WeWork India’s expenditure in the first quarter of FY26: 

Employee Benefit Expenses: The company’s spending on its employees, including salaries, wages, incentives, and more, rose to INR 47.3 Cr in the June quarter of the ongoing fiscal year from INR 36.8 Cr in the same quarter last year. 

Operating Expenses: All the expenses incurred by the company to run the operations, including management fees, IT charges, power, fuel and other utilities, rent, maintenance, repair among others, fall under this head. WeWork India’s operating expenses grew 13.8% to INR 130 Cr in Q1 FY26 from INR 112 Cr in Q1 FY25. 

Depreciation & Amortisation Expenses: Being a coworking space provider, this is one of the major expenses for the company. WeWork India’s depreciation and amortisation cost stood at INR 223.4 Cr in Q1 FY26 from INR 191.7 Cr in the corresponding period last year.